It becomes more complicated when the employees and the company are operating under different sets of culture and tradition. The obvious issue of cultural and institutional differences between the two countries (host and country of origin) creates a question primarily because it dictates the HRM practises and strategies that the MNC subsidiary will utilise, and the support that the host country will provide. Previous studies on HRM practises in the Asia Pacific region have documented that the culture of the origin country has been most influential in their HRM practises. While there are numerous studies outlining the impact of Western Multinationals on emerging economies, there is very little knowledge on the HRM practises among emerging economy MNCs in western economies. Therefore, it was this study’s purpose to examine the HRM practises of MNCs from emerging economies in western countries.
This study did not provide clearly stated objectives although it can be surmised from the discussion of the significance. This study aimed to (1) identify the HRM practises used by emerging economy MNCs in the UK, and (2) clarify the issue of the effects of cultural and institutional differences in MNC subsidiaries’ choice of HRM strategies and practises. The research questions are stated after the review of the literature and as follows:
The review of available literature explored the home and host country influences in the Taiwanese companies’ UK subsidiary’s selection of HRM practises through a comparison of Taiwanese and British companies’ current HRM practises. The HRM practises that were compared were: recruitment and selection; training and development; pay and benefits, performance appraisal system; management promotion and reward; flexible working; organisational communication; and participatory management; and international relations.
The most evident difference between the Taiwanese and British